Automatic savings program

ABSTRACT

A computer implemented method of processing a financial transaction executed by first person includes determining an automatic savings amount from the financial transaction by rounding up the amount of the financial transaction to the nearest dollar. The method further includes debiting the calculated savings amount from an account of the first person and crediting the savings amount to an account of a second person.

FIELD OF THE INVENTION

One embodiment of the present invention is directed to the computerprocessing of a consumer savings program. More particularly, oneembodiment of the present invention is directed to the computerprocessing of a consumer savings program that provides for automaticsavings during any transaction.

BACKGROUND INFORMATION

Many consumers feel that saving money is difficult. Those who make lessthan the median income level, or are raising families, or are newimmigrants, find it particularly challenging to put money away foremergencies, a child's education, or a special purchase. Even affluentconsumers who do have the means to save money often feel that they couldsave more.

Currently, a consumer can save funds in a bank account by makingdeposits into the account or by transferring funds from another account.Further, they can automate the savings function by setting up recurringtransfers from another account. However, the recurring transfer functionis limited by the requirement to set a specific and minimum transferamount and the need for the transfer to occur on a particular schedule.The recurring transfer function does not adequately support theflexibility of daily or small amount transfers.

In addition, grandparents or other relatives or friends sometimes desireto contribute money to somebody else's (e.g., a grandchild's) savingsaccount. These contributors likely desire an automatic and pain free wayto facilitate such a transfer of funds.

Based on the foregoing, there is a need for a system and method forautomatically facilitating savings.

SUMMARY OF THE INVENTION

One embodiment of the present invention is a computer implemented methodof processing a financial transaction executed by first person. Themethod includes determining an automatic savings amount from thefinancial transaction by rounding up the amount of the financialtransaction to the nearest dollar. The method further includes debitingthe calculated savings amount from an account of the first person andcrediting the savings amount to an account of a second person.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is an overview diagram of a system in accordance with oneembodiment of the present invention.

FIG. 2 is a flow diagram of the functionality performed by a server inaccordance with one embodiment of the present invention in order toenroll a customer in the automatic savings program.

FIG. 3 is a flow diagram of the functionality performed by a server inaccordance with one embodiment of the present invention to daily processthe automatic savings transaction.

FIG. 4 is a flow diagram of the functionality performed by a server inaccordance with one embodiment of the present invention to perform adaily posting of the automatic savings transaction.

FIG. 5 is a flow diagram of the functionality performed by a server inaccordance with one embodiment of the present invention to implement amatching process in conjunction with the automatic savings program.

DETAILED DESCRIPTION

One embodiment of the present invention is a computer implementedsavings program in which each financial transaction by a customer of abank or other financial institution automatically generates a savingsamount which is deposited in the customer's or somebody else's savingsaccount. Thus the customer can accumulate savings conveniently andpainlessly.

FIG. 1 is an overview diagram of a system 10 in accordance with oneembodiment of the present invention. System 10 includes a point of saledevice (“POS”) 12 coupled to a computer server 16 via a network 14.

POS 12 is an electronic cash register that includes a barcode reader 9that is used to read barcodes on products and to automatically enter theproducts and prices into POS 12. POS 12 further includes a card reader11 that reads account information from a credit card, debit card, or anyother type of financial device that can be used to purchase an item. POS12 may include other devices, such as a keypad, that can also be use toread account information for facilitating a transaction. In oneembodiment, POS 12 is located at a retailer.

Network 14 can be any type of network or communication device thatallows POS 12 to communicate with server 16. Network 14 includes one ormore routers or computer systems. In one embodiment, network 14 includesa computer system operated by the issuer of the credit card or debitcard/check card used to make a purchase at POS 12 (e.g., a computersystem operated by VISA).

Server 16 is a computer system operated by a bank or other financialinstitution that is implementing an embodiment of the present invention.Server 16 may be any type of computer or other device that is capable ofcommunicating with network 14 and executing software steps. In oneembodiment, server 16 includes a processor, memory and communicationinterface.

FIG. 2 is a flow diagram of the functionality performed by server 16 inaccordance with one embodiment of the present invention in order toenroll a customer in the automatic savings program. In one embodiment,the functionality of FIG. 2, and FIGS. 3-5 disclosed below, isimplemented by software stored in memory and executed by a processor. Inother embodiments, the functionality can be performed by hardware, orany combination of hardware and software.

100: Account set-up and maintenance screens/interfaces are accessed inresponse to a customer request to enroll in the automatic savingsprogram (50). In one embodiment, the screens/interfaces are accessed bybank personnel at a terminal locally or remotely connected to server 16.In another embodiment, a user may access the screens/interfaces at aterminal remotely connected to server 16 through network 14.

102: The checking account that is the source of the automatic savingsamount is selected. The eligible source accounts are displayed from thecustomer's profile (51). In other embodiments, another type of accountinstead of a checking account can be used, as long as the selectedaccount is a source of funds.

104: The types of debits/transactions that are to be “round up” areselected. “Round up” refers to one method used to calculate a savingsamount from a transaction. In one embodiment, the round up amount is anamount of excess funds produced by applying a rounder transaction to theamount of a transaction such as a credit/debit card charge at POS 12. Ifthe rounder transaction rounds up to the nearest dollar, for example, apurchase made for $54.08 would generate a rounded amount of $0.92. Otherembodiments of the present invention may round up to a predeterminedamount besides the nearest dollar. Still further, other embodiments ofthe present invention may calculate the savings amount using a methodother than round up. For example, a fixed percentage can be applied toeach transaction to calculate a savings amount, or a fixed amount ofmoney (e.g., $130) can be considered the savings amount. The availabledebits/transaction types to be round up are displayed (52) and caninclude only check card/debit card POS transactions, or any other typesof debits. Example of other debits that can be the subject of round upor other calculation of a savings amount include paper checks,electronic bill pay, electronic checks, automatic payments and AutomatedClearing House (“ACH”) transfers.

106: The recipient account or accounts for the savings amount isselected based on the displayed eligible recipient accounts and % fieldsor the account number can be inputted. In one embodiment, possiblerecipient accounts include the customers own savings account, person toperson transfer (e.g., a grandparent's round ups being credited to agrandchild's savings account or 529 college savings plan), charities,investment accounts, etc. In general, any account that can accepttransfers can be eligible for selection. If multiple recipient accountsare selected, the customer can choose a percentage distribution for eachof the accounts, or another mechanism that can be used to divide thesavings amount between the multiple accounts.

108: The name to display on the recipient's account statement as thesource of the transfer is input. The name may be customized to a maximumnumber of characters or may default to a pre-set description. Forexample the account statement might state “a Transfer From Grandma”.

110: The customer is given disclosures that for example, describe thecustomer's selections and the legal ramifications of such selections.

An embodiment of the present invention also allows the customer tomodify parameters or discontinue enrollment at any time remotely usingan online banking feature or other remote computing technology.

FIG. 3 is a flow diagram of the functionality performed by server 16 inaccordance with one embodiment of the present invention to daily processthe automatic savings transaction.

200: The debit to the source account (e.g., check card POS, check, etc.)selected at 102 is authorized.

202: The debit transaction, such as a purchase at POS 12 using a debitcard, is processed.

204: The debit transaction is posted to the source account.

206: The daily posting transaction begins.

208: The round up amount (or other savings amount) for each eligibledebit transaction is determined. This occurs on a daily basis.

210: All round up amounts are aggregated. This occurs on a daily basis.By aggregating the round ups for one daily posting, overdrafts to thesource account can be avoided. In one embodiment, the daily postingoccurs at the end of the day to further avoid overdrafts.

212: A determination is made if funds are available in the sourceaccount. If not, the aggregated round up debit transaction is cancelled(214) and a $0.00 transaction is created with a no funds in sourceaccount descriptor (216).

FIG. 4 is a flow diagram of the functionality performed by server 16 inaccordance with one embodiment of the present invention to perform adaily posting of the automatic savings transaction.

300: If funds are determined to be available at 212, the aggregatedround up debit transaction is posted.

302: The credit transaction is created.

304: A determination is made if the recipient account(s) selected at 106is valid. If it is valid, the credit transaction is posted (310).

306: If the recipient account(s) is not valid at 304, the credittransaction is returned to the source account and a $0.00 transaction iscreated with a status descriptor. A report of the invalid source accountis sent to an “exceptions & returns” file and enrollment of theautomatic savings account for that customer is terminated (312, 314).

316: Monthly statements are generated that include the automatic savingsfunction. Both the source and recipient accounts may display amonth-to-date and year-to-date summary of round up transfers on theirstatements.

FIG. 5 is a flow diagram of the functionality performed by server 16 inaccordance with one embodiment of the present invention to implement amatching process in conjunction with the automatic savings program. Abank or other organization can implement the matching process in orderto encourage more customers to enroll in the automatic savings program,or to encourage customers to modify their behavior for the benefit ofthe bank, such as to use their debit cards more often, use checks less,switch to electronic statements, use check safekeeping, etc. The bankcan offer to match the round up or other savings amount for a fixed timeperiod, a permanent time period, or other type of arrangement (e.g.,every 10th transaction, $0.05 for every transaction, etc.).

400: During the daily posting process of FIG. 4, or at another point inthe process (e.g., quarterly, annually, etc.), the customer data filefor the automatic savings program is pulled. The data file stores alltransactions eligible for matching and other data, such as the length ofenrollment for the customer, that can be used to determine if thecustomer has met the matching incentive criteria.

402: It is determined if the customer met the matching incentivecriteria. If not, the matching process is ended (408).

404: If the customer meets the matching incentive at 402, the matchingfunds credit transaction is calculated. The matching funds is thenposted to the recipient account (406).

As disclosed, an automatic savings program in accordance to embodimentsof the invention provides an easy and automatic method for a customer tosave, and can encourage increased savings.

Several embodiments of the present invention are specificallyillustrated and/or described herein. However, it will be appreciatedthat modifications and variations of the present invention are coveredby the above teachings and within the purview of the appended claimswithout departing from the spirit and intended scope of the invention.

What is claimed is:
 1. A non-transitory computer-readable medium storingcomputer-executable instructions for causing a processor to perform amethod for saving money comprising: posting a plurality of debittransactions to a source account; calculating an aggregate money savingsamount based on the plurality of debit transactions posted; determiningthat funds available in the source account exceed the aggregate moneysavings amount; debiting the source account by the aggregate moneysavings amount; crediting a recipient account by the aggregate moneysavings amount; calculating an additional money amount; and creditingthe recipient account by the additional money amount, where theadditional money amount is provided by a financial institution.
 2. Thenon-transitory computer-readable medium of claim 1, where thecalculating an aggregate money savings amount and the determiningwhether adequate funds are available are performed by a computer systemoperated by a financial institution.
 3. The non-transitorycomputer-readable medium of claim 1, where the predetermined time periodis a day, and where the additional money amount is equal to apredetermined monetary amount multiplied by a number of transactions ofthe plurality of debit transactions posted during the day.
 4. Thenon-transitory computer-readable medium of claim 1, where the additionalmoney amount is the predetermined monetary amount applied for eachtransaction posted during the predetermined time period.
 5. Thenon-transitory computer-readable medium of claim 1, where recipientaccount is a savings account, and the source account is a checkingaccount.
 6. The non-transitory computer-readable medium of claim 1,where a debit transaction of the plurality of debit transactions isassociated with a check card associated with the source account.
 7. Thenon-transitory computer-readable medium of claim 1, where a debittransaction of the plurality of debit transactions is associated with anelectronic bill pay associated with the source account.
 8. Thenon-transitory computer-readable medium of claim 1, the method forsaving money further comprising: receiving input from a holder of thesource account, where the input comprises information to discontinueenrollment of the source account.
 9. The non-transitorycomputer-readable medium of claim 1, where the additional money amountcredited to the recipient account is provided by a financial institutionof the source account.
 10. The non-transitory computer-readable mediumof claim 1, where a holder of the source account owns the recipientaccount.
 11. The non-transitory computer-readable medium of claim 1,where the source account is owned by a first holder and the recipientaccount is owned by a second holder.
 12. A system for saving moneycomprising: (a) a checking account associated with a customer capable ofexecuting debit transactions; (b) a savings account associated with thecustomer; (c) a computer memory storing computer executableinstructions, that when executed by a processor, cause the system toperform steps comprising: i. posting a plurality of debit transactionsto a source account; ii. calculating an aggregate money savings amountbased on the plurality of debit transactions posted over a predeterminedtime period; iii. determining whether adequate funds are available inthe source account to cover the aggregate money savings amount; and iv.if adequate funds are available in the source account, debiting thesource account by the aggregate money savings amount, crediting arecipient account by the aggregate money savings amount; and creditingthe recipient account by an additional money amount that is based on theaggregate money savings amount for a fixed period of time; and (d) theprocessor for executing the computer executable instructions.
 13. Thesystem of claim 12, where recipient account is a savings account, andthe source account is a checking account.
 14. The system of claim 12,where the predetermined time period is a day, and where the aggregatemoney savings amount is equal to a predetermined monetary amountmultiplied by a number of transactions of the plurality of debittransactions posted during the day.
 15. The system of claim 12, wherethe additional money amount credited to the recipient account isprovided by a financial institution of the source account.
 16. Thesystem of claim 12, wherein the calculating the aggregate money savingsamount is performed at an end of a day by aggregating all round up moneyamounts of the plurality of debit transaction posted that day, andwherein the additional money amount is equal to the aggregate moneysavings amount.
 17. The computer-readable medium of claim 2, wherein thecalculating the aggregate money savings amount is performed at an end ofa day by aggregating all round up money amounts of the plurality ofdebit transaction posted that day, and wherein the additional moneyamount calculated is equal to the aggregate money savings amount.
 18. Asystem comprising: a computer system of a financial institutionassociated with a customer's checking account capable of executing debittransactions; the computer system further associated with a customer'ssavings account; the computer system further comprising a processor anda computer memory storing computer executable instructions, that whenexecuted by the processor, cause the computer system to: post aplurality of debit transactions to the checking account; calculate anaggregate money savings amount based on the plurality of debittransactions posted over a predetermined time period; determine whetheradequate funds are available in the checking account to cover theaggregate money savings amount; and if adequate funds are available inthe checking account, debit the checking account by the aggregate moneysavings amount, credit the savings account by the aggregate moneysavings amount; and credit the savings account by an additional moneyamount that is based on a predetermined percentage of the aggregatemoney savings amount for a fixed period of time; and a point of saledevice communicating over a network with the computer system of thefinancial institution to provide information relating to the pluralityof debit transactions.
 19. The system of claim 18, wherein thecalculating the aggregate money savings amount is performed at an end ofa day by aggregating all round up money amounts of the plurality ofdebit transaction posted that day, and wherein the additional moneyamount is equal to the aggregate money savings amount.
 20. The system ofclaim 19, wherein calculating the aggregate money savings amount isbased off rounding up to a next dollar amount for each debittransaction.